Digital payments: One QR code to rule them all? – China’s latest business and technology news
A summary of the top news in Chinese business and technology for August 3, 2017. Part of the daily The China Project newsletter, a convenient package of China’s business, political, and cultural news delivered to your inbox for free. Subscribe here.
“China has not left cash behind completely, although its popularity as a payment method has fallen sharply since 2016,” is one conclusion of a report (paywall) by the Financial Times based on a survey of 1,000 urban Chinese people. The report sees Alibaba as the real winner in the fight over consumers’ digital wallets, calling China’s online payments market a “duopoly of one.”
The FT survey found that:
- 82.6 percent use Alibaba’s Alipay as one of their three main payment methods.
- 64.3 percent use Tencent’s WeChat Pay.
- 6.6 percent use UnionPay QuickPass, a digital payment service owned by the state-run debit and credit card network card payment system.
- 3.2 percent use Apple Pay.
In an article about UnionPay’s struggles to defend its market share against new digital payment services, Caixin cites similar but slightly different numbers:
- Payments by smartphone and QR code “grew 113% from the same period a year ago to 2.27 billion yuan ($337 million).”
- Tencent and Alibaba combined have 94 percent of the market.
A different report (paywall) in Caixin says that MasterCard “plans to roll out its QR-code-based service across Asia more aggressively in coming years,” as “people no longer bring wallets, and businesses and consumers are getting more used to doing business with smartphones by scanning QR codes.”
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Gray rhinos (?)
Wanda receives crumb of comfort from China’s currency regulator / Variety
HNA: The conglomerate that troubles China / Bloomberg
Chinese regulator has no plans to ask Anbang to sell overseas assets / CNBC
China’s Sunac raises $1 billion in bonds to refinance debt after deal spree / Reuters -
Luxury
Alibaba and Kering agree to cooperate on fighting fakes / NYT (paywall)
Casino hotel aimed at China’s ultra rich Is struggling to open / Bloomberg -
Australia
A deal for an Australian dairy wrapped in layers of Chinese loans / NYT (paywall) -
U.S.-China business
As Washington tries to protect tech, China could fight back / NYT (paywall)
In rare bipartisan display, Democrats back Trump on China trade probe / Reuters
China tries to calm U.S. trade spat while readying riposte / Bloomberg
China gives U.S.-based drug distributor a headache / Caixin
Grammys organizer says it will respect China bans / SCMP -
Economic policy
China’s fear of Japan-style economic bust drives crackdown on deals, says source / Bloomberg
China’s housing market cools further on policy curbs / Caixin -
Macro trends
Beijing may drop growth target after Communist Party congress, research firm’s chief says / SCMP